If you're a business owner shopping for a new work truck, van, or SUV, now is a great time to buy. Why? The Section 179 tax deduction allows car buyers from Kalispell to Evergreen to write off the full purchase price of qualifying vehicles and equipment in the first year rather than depreciating them over several years. This could lead to huge tax savings for your business.
At Don K Chrysler Dodge Jeep Ram, we have a wide selection of new commercial vehicles that may qualify for the Section 179 deduction. Our knowledgeable sales team can help you navigate the requirements and find the right vehicle for your business needs.
How Does Section 179 Work?
For the 2024 tax year, businesses can claim a Section 179 deduction of up to $1,220,000 on qualifying equipment purchases to benefit from immediate write-off benefits vs a multi-year depreciation. The deduction will phase out dollar-for-dollar when total equipment purchases exceed $3,050,000 during the tax year.
Special limits apply to vehicles: SUVs over 6,000 pounds are limited to a $30,500 deduction, while regular passenger vehicles under 6,000 pounds have different limitations. To qualify, equipment must be purchased and placed in service between January 1 and December 31, 2024.
Which Vehicles Qualify for Section 179?
Heavy SUVs, pickups, and vans used at least 50% for business are eligible for Section 179. Vehicles can be new or used and must be purchased and put into service in the same tax year. The vehicle must also meet certain weight requirements - it must have a gross vehicle weight rating (GVWR) above 6,000 pounds but not more than 14,000 pounds. Many popular commercial vehicles like the Ram 1500 and 2500, Chevy Silverado 2500, Ford F-150, and Ford F-250 qualify for the deduction.
Claiming the Section 179 Deduction
To claim the deduction, complete IRS Form 4562 and submit it with your business tax return. You must also begin using the vehicle for business in the same tax year you claim the deduction. Columbia Falls is one of the areas where we see many small business owners taking advantage of Section 179 when they purchase a new work vehicle from us.
Remember that the Section 179 deduction is subject to business use limitations. Vehicles used for personal and business purposes may have their deduction reduced based on the percentage of personal use. Ask a qualified tax professional to see how Section 179 can impact your specific tax situation.
Save on Your Next Commercial Vehicle Purchase
Start shopping for a new vehicle for your business at Don K Chrysler Dodge Jeep Ram. Our knowledgeable team is committed to helping your business succeed. We'll assist you in selecting the right commercial vehicle that qualifies for Section 179 to maximize your tax savings. Visit our Whitefish, MT, dealership today to learn more about how the Section 179 tax deduction can benefit your business.
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